DoD Awards $15M Accounting Services Contract to Sehlke Consulting LLC, Sole-Source
Contract Overview
Contract Amount: $15,023,681 ($15.0M)
Contractor: Sehlke Consulting LLC
Awarding Agency: Department of Defense
Start Date: 2022-03-01
End Date: 2024-08-31
Contract Duration: 914 days
Daily Burn Rate: $16.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: LABOR
Place of Performance
Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376
Plain-Language Summary
Department of Defense obligated $15.0 million to SEHLKE CONSULTING LLC for work described as: LABOR Key points: 1. Significant contract value of $15 million for accounting services. 2. Sole-source award raises questions about competition and potential price discovery. 3. Contract duration of 914 days spans over two years. 4. Focus on accounting services within the Department of Defense.
Value Assessment
Rating: questionable
The contract value of $15 million for accounting services is substantial. Without competitive bidding, it's difficult to benchmark pricing against similar contracts, raising concerns about potential overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price due to the absence of competitive bidding.
Public Impact
Taxpayers may be paying more than necessary for accounting services due to the lack of competition. The Department of Defense relies on Sehlke Consulting LLC for critical accounting functions. Oversight is needed to ensure the services provided are essential and priced appropriately.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Contract awarded to a specific company for accounting services
- Long-term contract duration
Sector Analysis
This contract falls under Other Accounting Services (NAICS 541219) within the Department of Defense. Spending in this sector can vary widely, but sole-source awards warrant scrutiny to ensure value for money.
Small Business Impact
The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses could have provided these services competitively.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight to ensure the necessity of the services and the reasonableness of the cost. Accountability for the decision to not compete is crucial.
Related Government Programs
- Other Accounting Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award lacks transparency.
- Potential for inflated pricing.
- Absence of competitive benchmarking.
- Limited small business participation.
- Cost-plus structure can lead to unpredictable total costs.
Tags
other-accounting-services, department-of-defense, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.0 million to SEHLKE CONSULTING LLC. LABOR
Who is the contractor on this award?
The obligated recipient is SEHLKE CONSULTING LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $15.0 million.
What is the period of performance?
Start: 2022-03-01. End: 2024-08-31.
What specific accounting services are being provided under this contract, and why were they deemed only available from Sehlke Consulting LLC?
The contract is for 'Other Accounting Services' (NAICS 541219). The justification for a sole-source award typically involves unique capabilities, proprietary knowledge, or urgent needs that only one contractor can meet. Without further details, it's unclear why Sehlke Consulting LLC was the only viable option for the Department of Defense.
What is the cost-plus-fixed-fee structure, and how does it impact the government's ability to control costs in this sole-source contract?
A Cost Plus Fixed Fee (CPFF) contract reimburses the contractor for allowable costs plus a fixed fee representing profit. While the fee is fixed, the total cost can fluctuate based on actual expenses. This structure can incentivize cost control, but in a sole-source scenario, the baseline costs themselves may be inflated without competitive pressure.
What is the potential financial risk to the government given the $15 million sole-source award for accounting services?
The primary financial risk is paying an inflated price due to the lack of competition. Without a competitive bidding process, there's no market validation of the proposed costs. The CPFF structure also means the government bears the risk of cost overruns, potentially leading to a total expenditure exceeding initial projections.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0018922RZ017
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 8618 WESTWOOD CENTER DR, VIENNA, VA, 22182
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $17,486,560
Exercised Options: $17,486,560
Current Obligation: $15,023,681
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2022-03-01
Current End Date: 2024-08-31
Potential End Date: 2024-08-31 00:00:00
Last Modified: 2025-12-09
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